The Turkish Statistical Institute (Türkstat) reported that the sectors contributing most to the rise in prices were education (75.5%), housing (62.01%), and food and health (37.49%).
Showing a clear declining trend, annual inflation in Turkey has distanced itself from the peak of 85.5% reached in October 2022. It hasn’t been this low since November 2021, when it stood at 21.31%, according to Türkstat data.
Month-on-month, the Consumer Price Index (CPI) rose by 2.06% between June and July, exceeding the 1.37% increase recorded in June.
In a statement released on social media, Turkish Finance Minister Mehmet Simsek attributed the month-on-month rise in inflation to seasonal effects.
“The disinflation process is progressing in line with our goals (…) We will continue to firmly implement our program to achieve lasting price stability, which is our main priority,” the minister stated.
With the same primary goal in mind, the Central Bank of Turkey reduced interest rates by 300 basis points in July, from 46% to 43%, exceeding the 250 basis points cut anticipated by the markets.
The institution announced it would maintain a restrictive monetary policy until there is a significant reduction in the underlying trend of inflation, forecasting a decrease in the annual rate to 24% in 2025 and 12% in 2026.
The official annual inflation rate for July, as reported by Türkstat, is significantly lower than the 65.15% calculated by ENAG, an independent group of academics and economists.
